FCA report on UK handling of claims for SME upsetting reading

fca coverThe Financial Conduct Authority (“FCA”) in the United Kingdom have released a paper titled “Handling of insurance claims for Small and Medium-sized Enterprises (SMEs) and it makes for some upsetting reading.

The executive summary includes the following findings:

findings

 

 

 

 

 

 

 

 

 

 

The question we have to ask is it any better in our part of the world? If you take the recent study by Queensland Institute of Technology that I referred to a few days back, I would suggest NO. In that paper, our Insured’s felt that the claims process was more stressful than the incident giving rise to the loss or disruption.

In my discussions with many claims managers, loss adjusters and other professionals in this space, I get a feeling of tiredness after years of being over worked, primarily due to the seemingly endless stream of catastrophes, coupled with retirements, resignations and transfer of good quality staff. Unless we invest wisely in claims and not just seek to cut costs the position will only get worse for our customers, the insuring public.

As an adjunct to the report, there is a second paper on the level of coverage etc found in the study. I will complete my reading of this paper over the weekend and post my thoughts next week.

 

For now if you would like a full copy of the report please tr15-06 SME Claims

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